Dopkins & Company, LLP completed a report on internal control over financial reporting and on compliance and other matters based on an audit of combined financial statements performed in accordance with Government Auditing Standards for federal programs for the operating period January 1, 2022 to December 31, 2022. Upon completion of the audit, one finding was identified. The following is a response to this finding:Finding 2022-001: The Companies do not have a process in place to verify, on an annual basis, that all parties (whether vendors, subcontractors or subrecipients) providing goods and services to the Companies federal programs under covered transactions have not been suspended or debarred.Horizon Response: In response to the finding, Horizon verified recipient eligibility through SAM.gov for all vendors utilized for federal funds from January 2022 to June 2023. None were identified on the Federal Suspension and Debarment list. Going forward, at the time Horizon engages with a new vendor for utilization of federal funds, we will individually verify the vendor is not included on the SAM.gov Federal Suspension and Debament list. Following the close of each fiscal year, Horizon will run the list of all vendors utilized for federal funding during the previous calendar year and verify the vendors are not included on the SAM .gov Federal Suspension and Debarment list.